Odoo’s Accounting module is one of the most powerful features of the platform. This guide walks you through the initial setup — chart of accounts, taxes, payment methods, and your first invoice.

STEP 1 Install the Accounting Module

Go to Apps and search for “Invoicing” or “Accounting”. Install the module. If you’re on Community edition, you get Invoicing. Enterprise includes full Accounting.

STEP 2 Set Up Your Company

Settings > General Settings > Companies
- Company Name
- Address
- Tax ID / VAT Number
- Currency
- Fiscal Year (e.g., January to December)

STEP 3 Configure Chart of Accounts

Odoo provides localized chart of accounts for many countries. During setup, select your country’s fiscal localization package.

Accounting > Configuration > Fiscal Localization
Select your country package and install it

STEP 4 Set Up Taxes

Accounting > Configuration > Taxes

# Example: Sales Tax
Name: Sales Tax 10%
Tax Type: Sale
Amount Type: Percentage
Amount: 10
Tax Account: Tax Received

# Example: Purchase Tax
Name: Purchase Tax 10%
Tax Type: Purchase
Amount Type: Percentage
Amount: 10
Tax Account: Tax Paid

STEP 5 Configure Payment Methods

Accounting > Configuration > Journals

# Bank Journal
Name: Bank
Type: Bank
Bank Account: Your bank account number
Currency: Your local currency

# Cash Journal
Name: Cash
Type: Cash

STEP 6 Create Your First Invoice

Accounting > Customers > Invoices > Create

Customer: Select or create
Invoice Lines:
  - Product: Consulting Service
  - Quantity: 10
  - Unit Price: 100
  - Tax: Sales Tax 10%

Confirm the invoice to post it to your books.

STEP 7 Record a Payment

When the customer pays, click “Register Payment” on the invoice. Select the journal (Bank or Cash), enter the amount, and validate. Odoo automatically reconciles the payment with the invoice.

Your Odoo accounting is now configured and ready for daily use. All transactions will flow through to the general ledger, trial balance, and financial reports automatically.